South Korea Proposes Disclosure Rules for Financial Influencers Promoting Stocks and Crypto

South Korea enacted the Virtual Asset User Protection Act on July 18, 2023, and put it into effect on July 19, 2024, primarily to regulate insider trading and market manipulation. However, a regulatory gap remains for financial influencers who promote stocks and cryptocurrencies on social media without transparently disclosing their holdings or compensation received, potentially exposing retail investors to conflicts of interest and information asymmetry.

On February 25, 2026, Democratic Party lawmaker Kim Seung-won introduced draft amendments to the Financial Investment Services and Capital Markets Act and the Virtual Asset User Protection Act. The proposals would require people who regularly provide investment advice through social media, publications or broadcasts to disclose the types and amounts of financial products and virtual assets they hold, as well as compensation received for recommendations. Penalties for violations would follow capital-market rules, but fine amounts and an effective date have not yet been announced.